ELECTRONIC WASTE

1. January 29, 2012 Computer Equipment Disposal and Recycling Commission 1 ELECTRONIC WASTE Information and Recommendations

2. 2 Presentation Outline Scope of the problem International and federal reactions Review of approaches across the United States Our recommendations

3. 3 What is E-Waste? Several categories Computers Televisions Audiovisual equipment Cellular phones

4. 4 How much of it is there? Staggering amounts of junked equipment ABC News: 315-600 million computers Inform: 130 million cellular phones USEPA says 163,420 TVs and computers will become obsolete every day in �06 And it will only get worse Useful life of TV now only ten years Just three years for computers Analog TVs about to become obsolete ABC report is over next 18 months; Inform report is annual within next three years. 135 million registered cell phone users in USA now.ABC report is over next 18 months; Inform report is annual within next three years. 135 million registered cell phone users in USA now.

5. 5 What�s in the stuff? Mercury Lead Cadmium Hexavalent chromium Other hazardous materials Fire retardants primarilyFire retardants primarily

6. 6 What�s being done around the world? Europe: Waste Electrical and Electronic Equipment (WEEE) directive Took effect in 2005 Participating countries develop own methods for compliance Responsibility is shared Manufacturers operate a take-back program Retailers accept old equipment for pick-up Consumers expected to bring old equipment to retail or other drop-off locations 0.01% and 0.1% by weight limits going into effect for lead, cadmium, mercury, hexavalent chromium and two flame retardants in Japan: Similar legislation enacted.

7. 7 What is the United States doing? Nothing. First federal hearing on e-waste occurred in �05 at House Subcmte. on Environment and Hazardous Materials Sens. Wyden (D-OR) and Talent (R-MO) prepared joint proposal for a tax credit for individuals recycling their old equipment

8. 8 Consequences of Inaction E-waste is now fastest growing component of landfills Hazardous materials, if not encapsulated or disposed of in properly-maintained landfills, can leach into groundwater Or our equipment ends up endangering people around the world�

9. 9 Welcome to Lagos, Nigeria All images from Basel Action Network film, �The Digital Dump�, issued in October 2005

10. 10 Welcome to Lagos, Nigeria Up to 75% of the equipment arriving here each month in 500 40-foot containers is junk. So it is�dumped,

11. 11 Welcome to Lagos, Nigeria �burned,

12. 12 Welcome to Lagos, Nigeria �and left for local children to �explore.�

13. 13 And it�s not just in Nigeria This is Guiyu, China

14. 14 How does this happen? Municipalities often hold annual drop-off days Funding constraints force use of low-bid recyclers Some of these companies are responsible for the pictures you saw Industry, legitimate recyclers, and environmental groups are united in wanting this practice to end

15. 15 Plus, it�s an economic opportunity Business Communications Company, Inc. 2005 report said: Demand for recycled plastic expected to jump 10.2% each year Metals mined from end-of-life electronic waste to grow 8.1% CRT glass to grow 7.5%

16. 16 Our Laboratories of Democracy Regions and states are beginning to act Maine, Maryland, and California all have enacted e-waste laws recently Washington State and New Hampshire just introduced legislation USEPA Region V, with Midwest state EPAs, has drafted regional legislation Northeast region also has drafted regional bill for introduction in state legislatures New York City also is debating legislation.New York City also is debating legislation.

17. 17 Our Laboratories of Democracy Minnesota, Maine, Arkansas, North Carolina, and California all have banned CRTs from landfills California also has enacted a bill effective July 1 requiring cell phone makers to take back their phones through stores, for free A patchwork of conflicting laws needs to be avoided

18. 18 And here in Illinois� Lt. Gov�s Green Govt. Council urging state government to move toward e-waste recycling DCEO provided $1 million to City of Chicago to start Goose Island facility Private concerns working with large institutions, Chicagoland Chamber, and school districts on obtaining donations of used equipment Need legislative action to connect, unify, and codify policy

19. 19 The Great Debate Agreed: a recycling system will be managed either by a government agency or third-party organization Not agreed: how this system will be financed

20. 20 The Two Competing Models Advance Recovery Fee (ARF) An additional charge, usually $10 or less, is imposed on the consumer at the time a piece of electronic equipment is purchased. Producer Responsibility (PR) Manufacturers become responsible for the complete life-cycle of the products they make, paying a fee per piece of equipment either sold or returned for recycling

21. 21 Advance Recovery Fee (ARF) California�s legislation adopted this model Favored by television manufacturers Low-margin competition from abroad makes it difficult for TV makers to absorb any additional costs or raise their prices IBM also supports ARF Other computer manufacturers, as well as retailers, oppose the ARF

22. 22 More on Producer Responsibility Maine and Maryland have adopted various models of PR USEPA Region V draft legislation is PR-based; so are Washington�s and New Hampshire�s Hewlett-Packard, Dell, and other computer manufacturers are supportive of legislation modeled on the PR concept Retailers also are generally supportive Television manufacturers oppose it

23. 23 What about the Tax Credit idea? Wyden-Talent provides $10 tax credit for individuals donating equipment Insufficient incentive? Doesn�t fund a recycling system Worsens whatever governmental budget the tax credit comes from Wyden-Talent oppose ARF because it imposes additional tax on electronic equipment

24. 24 Where do cell phone makers stand? Illinois-based Motorola is piloting a number of take-back approaches Manufacturers prefer to be considered apart from the TV and computer makers In Europe, cell phones by weight are only .4% of total recyclable electronic equipment Motorola provides a postage-paid envelope for customers to mail back their old phone�the company reports that people don�t like to bring in their phone when buying a new one because they like to move their data from one phone to another first. The Motorola approach solves this problem.Motorola provides a postage-paid envelope for customers to mail back their old phone�the company reports that people don�t like to bring in their phone when buying a new one because they like to move their data from one phone to another first. The Motorola approach solves this problem.

25. 25 What about reuse? Encourage greater use of existing reward mechanisms Profit-making motive for companies to recycle and then re-sell refurbished machines Federal tax deduction for charitable contribution of donated goods Further research needed on whether these incentives are sufficient New York City working on reuse language in its bill Mention Digital Divide group and Andy Pincon. Interesting angle on this is that legislation can be more broadly supported if reuse organizations like Digital Divide, Goodwill, etc. see the bill as advantageous to them, too.Mention Digital Divide group and Andy Pincon. Interesting angle on this is that legislation can be more broadly supported if reuse organizations like Digital Divide, Goodwill, etc. see the bill as advantageous to them, too.

26. 26 Our Recommendations We support producer responsibility Will lead to a well-funded system Will provide necessary incentive for manufacturers to spend less on recycling by using less hazardous material

27. 27 Recommendation #1 Producer responsibility is the right system Base fees on manufacturer shares of current sales Think about making retailers the data providers, so they also are part of the solution ARF too cumbersome to administer and can be problematic for equipment sold directly from manufacturer to consumers on the Internet ARF places no responsibility on manufacturers, thus providing no incentive to change product USEPA Region V draft legislation assumes retailers provide the info; so do other states.USEPA Region V draft legislation assumes retailers provide the info; so do other states.

28. 28 Recommendation #2 The scope of legislation should be as broad as possible from the beginning Televisions, DVD players, VCRs Computers, printers, other peripherals, fax machines Cell phones, I-pods, PDAs

29. 29 Recommendation #3 Establish recycling goals for whatever organization runs the system Set the goals by product category and tie them to the amount of recycling revenue received. Reward manufacturers for product design improvements by lowering the fee per unit

30. 30 Recommendation #4 Legislation needs to work across state lines Make it compatible with regional efforts so that the framework of an eventual national system is formed Manufacturers will find it easier to comply, and costs will be lower

31. 31 Recommendation #5 Retailers need to be the primary information source for consumers Manufacturer websites also should be required to include recycling information

32. 32 Recommendation #6 Recyclers need to go through a qualification/auditing process Require recyclers to not export the trash to third-world countries To establish thriving commercial recycling industry, minimize use of prison labor

33. 33 Recommendation #7 Historic/orphan products need to be apportioned fairly The most equitable method appears to be by share of returned products.

34. 34 Recommendation #8 Legislation needs to be matched with a landfill ban Take effect 1-2 years after e-waste legislation enactment. Five other states have enacted such bans for CRTs.

35. 35 Recommendation #9 Give manufacturers the option to fund their own recycling system Manufacturers should agree to use local recyclers so the state economy benefits Manufacturers must submit required reports with proof of recycling

36. 36 The Bottom Line Illinois has another chance to lead the region Only the coasts are acting so far Illinois can show the way Last week we improved the health of our own state�s kids by proposing the mercury rule Now we can improve the health of kids around the world by dealing with e-waste We look forward to further collaboration on this important effort